Number of Disclosures by KOSPI Listed Companies Increased by 5.9% Last Year... KOSDAQ Up 1.4%

Number of Disclosures by KOSPI Listed Companies 21,529
Number of Disclosures by KOSDAQ Listed Companies 22,349
Notably, English Disclosures and Inquiry Disclosures Show Significant Increase

Last year, the overall number of disclosures by listed companies increased. In particular, the rise in English disclosures contributed to enhancing foreign investors' accessibility to the capital market. In the KOSDAQ market, inquiry disclosures surged significantly due to the sharp rise in secondary battery stocks.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

According to the Korea Exchange on the 14th, an analysis of last year's disclosure performance showed that the total number of disclosures by listed companies on the KOSPI market was 21,529, a 5.9% increase compared to the previous year.

The Exchange explained, "As companies maintained an active disclosure stance, all types of disclosures, including comprehensive disclosures, timely disclosures, voluntary disclosures, and fair disclosures, increased overall."

Timely disclosures increased by 5.2% to 17,517 cases last year. Despite concerns about economic recession and a high-interest rate environment, disclosures related to single sales and supply contracts increased by 5.3%. Regarding corporate investment activities, acquisitions and disposals of other companies' stocks and tangible assets decreased by 21.9%, but disclosures of new facility investments increased by 3.4%.

In terms of corporate management activities, litigation disclosures increased significantly, while disclosures related to securities issuance, such as capital increases/decreases and issuance of stock-related bonds, decreased. Litigation disclosures rose by 86.8%, whereas disclosures on capital increases/decreases and stock-related bond issuance fell by 24.9%.

With an increase in patent acquisition disclosures and technology transfer contract disclosures, comprehensive disclosures maintained a continuous upward trend.

Voluntary disclosures increased by 6.3% to 1,562 cases. Due to companies' active responses to rumors and reports, explanatory disclosures rose by 21.1%, and voluntary disclosures increased overall due to more announcements related to dividend record dates following amendments to corporate articles of incorporation for dividend procedure improvements.

Fair disclosures increased by 10.1% to 2,389 cases. All types of fair disclosures showed an increase compared to the previous year, including disclosures of preliminary business performance and sales forecasts, driven by companies' strengthened investor relations (IR) activities.

Inquiry disclosures rose by 24.5% to 61 cases. Both inquiry disclosures related to rumors and reports and those related to market fluctuations increased.

English disclosures increased by 24.5% to 3,053 cases. With the Exchange providing translation and other support services for listed companies and the phased mandatory implementation of English disclosures, proactive participation by listed companies increased, resulting in growth in both the number of English disclosures and the number of submitting companies. Last year, the number of English disclosures increased by 600 cases, and the number of submitting companies rose by 35.

Due to increased uncertainty in business conditions caused by domestic and international economic slowdowns and a sharp rise in global interest rates, the number of companies designated for non-compliant disclosures was 35, an increase of 14 cases compared to the previous year. Non-disclosure and disclosure reversals increased compared to the previous year, while disclosure changes decreased.

The total number of disclosures in the KOSDAQ market last year was 22,349, a 1.4% increase compared to the previous year. However, with the overall number of listed companies increasing due to the active initial public offering (IPO) trend, the average number of disclosures per company decreased by 0.6 to 13.1 cases.

In particular, in the KOSDAQ market, inquiry disclosures increased sharply due to the surge in stock prices of innovative growth stocks such as secondary batteries. Inquiry disclosures rose by 71.7% to 103 cases last year, compared to 60 cases the previous year.

Timely disclosures increased by 2.6% to 19,242 cases. Regarding fundraising, disclosures of stock-related bond issuance slightly increased, but the actual amount of funds raised decreased by 10.6% to a total of 10.1 trillion KRW due to economic sluggishness. In corporate restructuring activities, mergers and acquisitions (M&A) for new business promotion and business reorganization were active, leading to a 50.0% increase in disclosures of changes in major shareholders compared to the previous year. Regarding corporate business activities, disclosures of major sales such as single sales and supply contracts decreased by 10.9%, but comprehensive disclosures of major management matters, including clinical trials driven by active research and business activities of pharmaceutical and bio companies, increased by 14.6%. Due to listed companies' efforts to secure reserve funds in preparation for economic uncertainty, disclosures related to cash and stock dividends and treasury stock acquisitions decreased by 15.2% and 27.0%, respectively.

Fair disclosures increased by 1.1% to 1,018 cases, but voluntary disclosures decreased by 10.1% to 1,986 cases. English disclosures increased by 33.8% to 617 cases. The number of companies designated for non-compliant disclosures increased by 21 cases to 75 compared to the previous year.

An official from the Exchange stated, "We will continue to encourage active and proactive disclosure compliance by listed companies and conduct education to prevent non-compliant disclosures to foster an environment of faithful disclosure. We will also promote English disclosures by listed companies through phased mandatory implementation and support measures to expand English disclosures, thereby enhancing foreign investors' accessibility to the capital market."